The Maryland Board of Public Works (BPW) today approved a new contract for nine energy service companies (ESCOs) to develop and implement comprehensive energy efficiency and guaranteed savings programs for State government facilities. Energy efficiency projects are implemented by the Maryland Department of General Services (DGS) through Energy Performance Contracts (EPCs) which are saving the State, on average, $21 million annually, or $310 million over the life of the contracts. The new contract is also available for local governments to utilize.
Since 2007, the Board has approved 21 EPC projects which require no upfront costs, and are paid for over time from utility bill savings. This enables the State to reduce operating costs while also realizing the benefits of more energy efficient infrastructure and equipment.
“With an 11 percent reduction in energy use since 2008, State government is leading by example and helping create a more sustainable energy future for our fellow Marylanders,” said DGS Secretary Alvin C. Collins. “By leveraging energy savings to pay for energy efficient upgrades, we are also saving taxpayer money. The contract is also an important tool for local governments looking for ways to finance energy efficiency improvements.”
The contract awarded by BPW today is for Phase I EPCs and requires ESCOs to provide a detailed energy audit, engineering feasibility study, and preliminary design to identify cost-effective solutions. Phase II includes the final design and specifications, as well as project financing and must be submitted to BPW for approval.
Here are some EPC success stories (based on FY13 data):
• The Department of Health & Mental Hygiene (DHMH) lowered its overall energy consumption by 47 percent since 2008 in large part because of an EPC at Spring Grove Hospital Center which included lighting upgrades, water conservation improvements and a more energy efficient heating system.
• The State Highway Administration (SHA) cut its electricity use by 28 percent since 2008. Through the combination of an EPC and an individual energy efficiency project, SHA converted all of its highway signs, and all of its 3,000 traffic lights statewide to LED lamps. SHA’s total energy savings over the 15-year term of the EPC amounts to approximately $35 million.
• The Department of Public Safety and Correctional Services (DPSCS) reduced its energy use by 41 percent since 2008. An EPC allowed DPSCS to upgrade the steam system at the Jessup correctional facilities which has significantly reduced natural gas usage and water consumption.
The Phase I contracts are available to State agencies and local governments. Public school systems, wastewater treatment plants, and cities such as Baltimore, Gaithersburg and Cumberland have utilized the contracts. The Board awarded contracts to the following ESCOs: Siemens Industry, Inc.; Noresco, LLC; PEPCO Energy Services, Inc.; Ameresco, Inc.; Constellation NewEnergy, Inc.; Honeywell International, Inc.; Energy Systems Group, LLC; Johnson Controls Inc.; and ABM Building Services, LLC.
Learn more about Maryland’s sustainable policies, practices and programs at green.maryland.gov and follow at @GreenMaryland.